The final version of the six-year capital budget for transportation projects, MDOT reported, “is broadly consistent” with the draft version released last fall.
“Thanks to Governor [Wes] Moore, support from stakeholders around the State, and the Maryland General Assembly, the last legislative session resulted in new revenues dedicated specifically to transportation funding,” according to the Department. “This $22.1 billion CTP reflects this additional revenue. The new legislation provides more than $400 million per year in additional state money, which will allow the Department to match available federal funding to add nearly $700 million in total annually to the program. This money stabilizes the program allowing MDOT make smart investments to improve the safety of the transportation network, drive economic growth and preserve our transportation systems. (Download CTP below.)
The six-year Final CTP outlines capital investments in each mode funded by the Transportation Trust Fund: Maryland Aviation Administration, Maryland Port Administration, Maryland Transit Administration, Motor Vehicle Administration, State Highway Administration, and The Secretary’s Office, as well as Maryland’s investment in the Washington Metropolitan Area Transit Authority (WMATA). The Maryland Transportation Authority’s toll facilities are financed, constructed, operated and maintained with toll revenues paid by customers using those facilities and represent an additional $8 billion investment in the State’s transportation system in Fiscal Years 2026-2031.
According to MDOT, the Final CTP includes the Department’s “core commitments” to construct US 15 and I-81 in Western Maryland, modernize the light rail system in Baltimore (includes 52 low-floor LRVs; upgrades at all 33 stations; updated traffic operations to reduce delays and increase safety; new track, power, and control systems; and maintenance facility updates), and rehabilitate the Port of Baltimore’s Dundalk Marine Terminal Berths 11-13, among others. Projects also moving to construction include complete street efforts for MD 97 in Montgomery Hills and MD 5 in St. Mary’s County, as well as key congestion reduction efforts for I-97 in Anne Arundel County. As part of the Department’s commitment to a new project prioritization process, MDOT said the Final CTP also includes $10 million in Fiscal Years 2026 and 2027 to support feasibility studies “that will advance local and state priority highway, pedestrian, bicycle and transit projects through initial planning.”
Following are among the freight and passenger rail-related projects included in the CTP.
Multimodal Freight Projects
“The MDOT is advancing multiple plans and programs which include freight projects in various stages of development from concept to construction,” MDOT reported in the CTP. “These projects include highway, port, air and rail improvements, maintenance, capacity expansion, and operational projects such as Intelligent Transportation Systems (ITS) and Transportation System Management Operations (TSMO) applications. The highway projects help improve safety, protect roadways from truck damage, improve access and mobility for freight vehicles, and help increase safe havens for truck drivers to obtain required rest. Investments in landside improvements and harbor dredging at the Port of Baltimore keep the inbound and outbound supply chains flowing. Partnerships with short line, switching, and Class I railroads are beneficial for increasing capacity and improving operations to provide alternatives for Maryland shippers. Major rail tunnel and rail bridge projects along the Amtrak Northeast Corridor will not only improve travel for passengers but also unlock freight bottlenecks for Class I railroad freight traffic.”
According to the MDOT, “together, with support from USDOT and CSX Transportation, the Maryland Port Administration heads towards substantial completion of the 130-year-old Howard Street Tunnel and improving the vertical clearance at 22 bridges between Baltimore and Philadelphia to create a double-stack rail corridor to and from the Port of Baltimore and the entire East Coast.” This project, it said, “unlocks immeasurable potential for Maryland’s freight rail network and increases Baltimore’s already well-positioned reach into the American heartland.” It is currently under construction with a target completion date in 2027. Double-stack service started in October 2024 on a temporary route to/from the north of the Port of Baltimore. The permanent, shorter route through the tunnel is expected to open in mid-2026.
MDOT reported that in 2026 it “will continue efforts toward the establishment of a Public Private Partnership (P3) for the long-term operations, maintenance, and state of good repair of the state-owned freight railroad lines on the Eastern Shore.” This partnership, it said, “will increase opportunities for job growth and economic growth for Eastern Shore Counties and the rail-depending customers along these lines.”
MDOT in 2026 will initiate an update to the Maryland Statewide Freight Plan that it said “contains specific policy recommendations and provides guidance for development of freight programs at the Port, on rails, highways, and in the air.” The Department will team with carriers, shippers, and freight network users “to implement the plan strategies so they continue to work for the entire transportation system and the state as a whole.”
According to MDOT, the CTP includes $5 million, over 5 years, for the “first ever” Maryland Statewide Rail Grant Program. “Rail transportation continues to be a safe and environmentally friendly way to move freight in Maryland,” the Department said. “The grant program offers state grant assistance to local jurisdictions, railroads, businesses and commercial interests, and other key agencies to help preserve railroad corridors, support economic development, and foster sustainability and innovative technologies. Projects supported by the initial round of awards will support rail rehabilitation, resilience efforts, corridor preservation and improvements for rail-served businesses.”
The list below highlights projects that MDOT said “have significant freight impacts and are funded for planning, design, and construction activities” in the CTP, for approximately $2.3 billion. It also identifies costs for Port projects by marine terminal and costs for highway- and rail freight-related projects in each county.
Maryland Transit Administration (MTA) Construction Program
MARC, Freight, Light Rail, Baltimore Metro, Multi-Modal, Locally Operated Transit Systems
Among the primary construction projects included in the CTP are:
- MARC Maintenance, Layover, & Storage Facilities: “Planning, environmental documentation, design, and construction of maintenance, layover, and storage facilities. Includes design and construction of storage tracks, replacement track switches, high-level platforms, and yard electrification at MARC Martin State Airport facility. Also includes the construction of the MARC Riverside heavy maintenance building, including two new natural gas and diesel burners, and pavement repair. Each of these facilities support equipment that is used across all MARC lines.”
- MARC Improvements on Penn Line: “Ongoing improvement program to ensure safety and quality of service along the MARC Penn Line. Program is implemented through Amtrak construction agreements that are required in order to provide MARC service on the Amtrak-owned rail corridor. Amtrak efforts include projects such as passenger upgrades at Baltimore Penn and Washington Union Stations, interlocking work, and other track improvements along the Northeast Corridor.”
- MARC Coaches – Overhauls and Replacement: “Minor overhaul of 63 MARC III coaches, the overhaul of MARC IV railcars and truck components, and the overhaul or replacement of MARC multi-level railcars. MARC coaches are used interchangeably across all MARC lines.”
- MARC Locomotives – Overhauls and Replacements: “Overhaul eight diesel SC-44 locomotives, overhaul six GP39H-2 diesel locomotives, complete mid-life overhaul for 26 MP36PH-3C diesel locomotives, develop specifications for new locomotive procurements, and replace six electric locomotives. Diesel locomotives are used interchangeably across all MARC lines, while electric locomotives are used only on the Penn line. This project will include the procurement of an electric locomotive power solution to allow for electric operations of the Penn Line when required by Amtrak on the NEC, after the completion of the Frederick Douglass Tunnel Project.”
- Freight Rail Program: “The MTA Freight Rail program supports inspection, design, maintenance, and rehabilitation projects for state-owned freight rail lines, structures, and grade crossings. Projects include regular inspection and rehabilitation of freight railroad bridges in compliance with Federal regulations, grade crossing inspection and repair, and track improvements.”
- Metro and Light Rail Maintenance of Way: “Provide annual maintenance to major systemwide rail infrastructure to keep vital guideway elements in a state of good repair. Such elements include but are not limited to aerial structures and stations, girders, motor operated switches, ballast, concrete and timber ties, trackwork. Also support emergency response services as well as program management along the roadway as well as at rail yards.”
- Light Rail Vehicle Overhaul: “Perform a mid-life overhaul of Light Rail vehicles. A 15-year inspection and overhaul of the major and sub-assemblies of the vehicles will be performed. The effort will also involve identifying and replacing obsolete parts to improve vehicle performance. This project also supports ongoing overhauls of systems to ensure reliability and safety.”
- Light Rail Systems Overhauls and Replacements: ”Includes the replacement of key systems throughout Light Rail including train control signals, grounding replacement, power systems, switches and switch heaters, substations, wide area network systems, suspension systems, and overhead catenary wire.”
- Light Rail Trackwork Overhauls and Replacement: ”Repairs and replacements of trackwork throughout the Light Rail system including switch ties, grade crossings, interlockings, and restraining rail curves.”
- Metro Railcar and Signal System Overhauls and Replacement: ”Replacement of Metro railcars and repair of critical equipment such as traction motors, gearboxes, axles, and wheels as well as repair and replacement of signal system and associated components. A Communications-Based Train Control system will be installed.”
- Metro Tunnel Repairs and Improvements: ”Address various rehabilitation and repair projects throughout the metro tunnel system while performing regular inspections of tunnel infrastructure. Work includes but is not limited to addressing active leaks, repairing tunnel vent shafts, replacing outdated station doors, pressure testing and repairing dry standpipe, managing storm water management filters and remediation, actively cleaning tunnels of corrosive materials and unsightly debris, and street grate replacement at 19 vent shafts.”
- Fare Collection System and Equipment Replacement: ”Complete replacement of the current fare system including ticket vending machines, faregates, fareboxes and smart card/mobile app readers, back-office software and other related components as well as on-going overhaul and replacement of system components as needed for the core services including Bus, Light Rail, and Metro.”
- Purple Line: ”The Purple Line is a 16-mile double track light rail line that will operate between Bethesda in Montgomery County and New Carrollton in Prince George’s County. The Bethesda to Silver Spring segment will include a parallel hiker/biker trail. The line will include direct connections to Metrorail in four locations, all three MARC Train lines, and Amtrak. The project includes track, stations, railcars, and two operation and maintenance facilities. The project is being delivered as a public-private partnership for the design, construction, financing, operation, and maintenance of the facility.”
- Frederick Douglass Tunnel: ”Replace the existing 1.4-mile B&P Tunnel, which dates from the Civil War era. At nearly 150 years old, it is the oldest tunnel Amtrak inherited and a single point of failure for MARC’s Penn line and the Northeast Corridor. Led by Amtrak, MDOT and MTA are coordinating design and phasing plans to replace the tunnel to meet the needs of the 9 million MARC and Amtrak customers who rely on it annually. The project also includes a new ADA-accessible West Baltimore MARC Station.”
- Penn Station Investments: ”Multimodal access improvements at and around Baltimore Penn Station, funded by a RAISE grant and Congressionally Designated Spending managed as a grant. The project will include the addition of a full-time dedicated bus lane on Charles Street, new curb extensions, bus stop improvements, real-time sign information, and pedestrian and bicycle access improvements all around or connecting to Penn Station in order to improve access to that station. State funding will be used to match two Federal funding sources ($5M in Congressionally Designated Spending and $6M in a RAISE grant).”
- Light Rail Modernization Program: ”The purpose of the project is to replace its entire existing aged fleet of Light Rail vehicles serving the Baltimore region; upgrade the stations and the maintenance facilities to accommodate the new vehicles, replacement of the Howard Street rail, and other necessary improvements to modernize the Light Rail system. MTA’s existing fleet includes 52 standard, 95-foot rail cars dating back to the system’s launch in 1992. All vehicles have reached the end of their useful life or are approaching the end of their useful life. Each project within this program is a Project Labor Agreement candidate.”
- Susquehanna River Bridge Replacement: ”Amtrak will lead design efforts to replace the Susquehanna River Bridge.”
- WMATA Capital Improvement Program: ”The program provides Maryland’s share of the funding for the Washington Metropolitan Area Transit Authority’s (WMATA) Capital Improvement Program (CIP). It includes Maryland’s share of matching funds to federal formula funds received directly by WMATA as well as Maryland’s share of additional state and local funds for WMATA capital projects.”
“The Final CTP builds on the Moore-Miller Administration’s goals to make transportation across the state safer, more reliable and more efficient while also increasing affordability, accessibility and resiliency,” MDOT Acting Secretary Katie Thomson said. “This program will get transportation priorities back on track and rev up Maryland’s economy.”
According to MDOT, the FY 2027 budget by the Governor requires approval by the Maryland General Assembly during the 2026 Legislative Session.
